SA continues to outperform the other states with work in hand for builders and indicators such as auction clearance rates holding up, compared, in particular, to the eastern states.

But early indicators are that recent government announcements about changing tax laws for capital gains tax and negative gearing along with interest rate rises are starting to impact on the market. Some builders are reporting a slow down in enquiries and hesitation from consumers to sign contracts. It's all about confidence and, persistent bad news is starting to bite.
 
HIA economists are predicting a slow down in SA through the rest of this year but then a rebound in activity after then.
 
For SA, the economic fundamentals are strong into the foreseeable future, with major infrastructure and defence projects requiring a strong increase in population growth to meet workforce needs, and all of these new residents need somewhere to live.
 
Despite a possible slow down through the remainder of this year, it is vital that fast-tracking the delivery of infrastructure and, the push towards greater productivity across the whole housing supply chain must continue.